"The market is growing very fast. We are looking, but it depends on pricing and many other factors. We are talking, but we have not made any decisions," Rusdi Kirana, Lion Air co-founder and chief executive officer, told the news outlet Tuesday.

Analyst Scott Hamilton said indications point to a pending Lion Air order for as many as 100 aircraft worth roughly $9 billion.

Meanwhile, Malaysia's AirAsia confirmed Friday intentions to submit to its board plans for its own $9 billion, 100-plane Airbus order in two weeks.

According to the report, several sources with knowledge of the negotiations indicate EADS value in the tie-up could increase from the originally proposed 60 percent to as much as 65 percent. A source close to BAE stated no such discussions have transpired.

If successful, the merger would create the world's largest aerospace company with anticipated annual sales of $93 billion. It would also strengthen EADS defense sector, pitting it more successfully in head-to-head competition with rival Boeing Co.

Click here for the full Lion Air report and here for more merger details.